Posting picture using Windows Live Writer

I have been using Windows Liver Writer Beta version. I really like to use it to post my blogs. However, the one issue that I have is that I can't simply add picture though Windows Live Writer. My work around is to put the picture on my post first, and edit it later on.

Picture taken near by Bow Valley Rand at Fish Creek Provincial Park.

Hey, it works. Now I wonder where does the picture actually stored.